Corporate Adviser
  • Content Hubs
  • Magazine
  • Alerts
  • Events
  • Video
    • Master Trust Conference 2024 videos
  • Research & Guides
  • About
  • Contact
  • Home
  • News
  • In Depth
  • Profile
  • Pensions
    • Auto-enrolment
    • DB
    • DC
    • Defaults
    • Investment
    • Master Trusts
    • Sipps & SSAS
    • Taxation
  • Group Risk
    • Group Life
    • Group IP
    • Group CIC
    • Mental Health
    • Rehab
    • Wellbeing
  • Healthcare
    • Musculoskeletal
    • Mental Health
    • IPT
    • Wellbeing
    • Trusts
    • Cash Plans
  • Wellbeing
    • Mental Health
    • Health & Wellbeing
    • Financial resilience
  • ESG
No Result
View All Result
Corporate Adviser
No Result
View All Result

ABI calls for Govt to simplify plans to raise minimum pension age

by Emma Simon
October 12, 2021
Share on FacebookShare on TwitterShare on LinkedInShare on Pinterest

The pensions industry has given a stark warning to politicians that current plans to increase the age at which people can access their retirement funds will “bake in complexity” to pension rules for decades to come.

The warning comes in a letter from the Association of British Insurers, sent to Stephen Timms, chair of the Department of Work and Pensions Select Committee.

Under current plans the age at which people can access their retirement savings will increase from 55 to 57, in line with improved longevity and planned increases to the state pension age. 

However the government is also proposing that people currently savings into a pension will be ale to ‘protect’ their normal minimum pension age (NMPA).

The ABI says it is “seriously concerned” about these proposals which will mean some savers have an NMPA of 55, while others will have an NMPA of 57. It added that concerns about these proposals had not been resolved and there was an urgent need to pause these plans until a more simpler solution can be found.

In the letter the ABI said: “[These proposals] go against joint efforts by the government and industry to simplify the experience people have with their pension journey.” 

It added that as the proposals stand there is a risk of widespread confusion among consumers, and it will be far harder for providers to engage and communicate with members effectively.

 The ABI said the plans could also create “perverse” incentives for customers to switch pensions in order to keep an access age of 55. There are also potential clashes with other policy objectives, such as DC consolidation of small pension pots.

It added there was also the risk of scammers exploiting the situations by playing on fears that people may not be able to access their funds at the earlier age. 

The ABI is proposing that the NMPA is increased across the board, with only limited protections available for certain employments, for example fire fighters. It added there is a precedent for this when the minimum pension age was raised from 50 to 55 in 2010.  

VIDEO FROM ROYAL LONDON


Find out more about how to support the switching of a workplace pension

Corporate Adviser Special Report

REQUEST YOUR COPY

Most Popular

  • Govt sets out roadmap for blockbuster pension reforms

  • Standard Life launches financial coaching platform for families

  • TPT launches managed retirement income for life offering

  • Capital Cranfield appoints LGIM DB head as trustee

  • Underestimating life expectancy leading to £35,000 shortfall in pension planning: BW

  • Govt Spending Review: industry reaction

Corporate Adviser

© 2017-2024 Definite Article Media Limited. Design by 71 Media Limited.

  • About
  • Advertise
  • Privacy policy
  • T&Cs
  • Contact

Follow Us

X
No Result
View All Result
  • Home
  • News
  • In Depth
  • Profile
  • Pensions
    • Auto-enrolment
    • DB
    • DC
    • Defaults
    • Investment
    • Master Trusts
    • Sipps & SSAS
    • Taxation
  • Group Risk
    • Group Life
    • Group IP
    • Group CIC
    • Mental Health
    • Rehab
    • Wellbeing
  • Healthcare
    • Musculoskeletal
    • Mental Health
    • IPT
    • Wellbeing
    • Trusts
    • Cash Plans
  • Wellbeing
    • Mental Health
    • Health & Wellbeing
    • Financial resilience
  • ESG

No Result
View All Result
  • Home
  • News
  • In Depth
  • Profile
  • Pensions
    • Auto-enrolment
    • DB
    • DC
    • Defaults
    • Investment
    • Master Trusts
    • Sipps & SSAS
    • Taxation
  • Group Risk
    • Group Life
    • Group IP
    • Group CIC
    • Mental Health
    • Rehab
    • Wellbeing
  • Healthcare
    • Musculoskeletal
    • Mental Health
    • IPT
    • Wellbeing
    • Trusts
    • Cash Plans
  • Wellbeing
    • Mental Health
    • Health & Wellbeing
    • Financial resilience
  • ESG

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.